Morning News Call - India, October 17

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FACTORS TO WATCH
9:30 am: Finance Minister Arun Jaitley at an event in New Delhi.
11:00 am: Prime Minister Narendra Modi to inaugurate All India Institute of
Ayurveda in New Delhi.
5:00 pm: Axis Bank earnings conference call in Mumbai.
LIVECHAT- JAPAN ELECTIONS AND ECONOMY.
October 22nd's lower house vote decides whether Prime Minister Shinzo Abe's
ruling bloc would keep its two-thirds "super" majority and solidify his grip on
power. Such an electoral outcome would suggest a continuation of Abe's
reflationary economic policies. Freya Beamish, chief Asia economist at Pantheon
Macroeconomics, joins us to discuss the fate of Abenomics, BOJ's QE programme
and markets at 12:00 pm IST. To join the conversation, click on the link: here
INDIA TOP NEWS
• Tata Steel, Thyssenkrupp will not spin off joint venture in next 2-3 years
Tata Steel and Thyssenkrupp have no plans to spin off their pending European
steel joint venture within the next two to three years, Tata's managing director
said on Monday.
• Abu Dhabi Investment Authority's unit to invest $1 billion in India's
infra fund
National Investment and Infrastructure Fund on Monday said it signed a $1
billion investment deal with a unit of Abu Dhabi Investment Authority- one of
the largest sovereign wealth funds in the world.
• Federal Bank Q2 profit rises, beats estimates
Federal Bank Ltd posted a 31 percent rise in second-quarter net profit,
helped by lower provisions for bad loans.
• India prefers domestic buyer for Air India - government source
India would prefer selling state-owned Air India to a domestic buyer, a
government source told reporters on Monday, as it finalises the privatisation
process.
• Flipkart in talks to buy stake in BookMyShow - Economic Times
Indian e-commerce firm Flipkart is in talks for a partnership with online
ticketing platform BookMyShow in a bid to build out its services and transaction
offering, the Economic Times newspaper reported.
• Godrej Agrovet surges on market debut
Animal feed producer Godrej Agrovet Ltd's shares surged as much as 37
percent on market debut on Monday after an initial public offering of about $179
million.
GLOBAL TOP NEWS
• Trump declares Obamacare 'dead,' urges Democratic help for short-term fix
U.S. President Donald Trump on Monday declared Obamacare "dead" and "gone,"
but urged Republicans and Democrats in Congress to craft a short-term fix of
healthcare markets under the 7-year-old law that critics say he has effectively
sabotaged.
• Airbus to take majority stake in Bombardier CSeries jet program
Airbus SE agreed on Monday to buy a majority stake in Bombardier Inc's
CSeries jetliner program, grabbing control of a struggling competitor at the
second attempt and giving the Canadian plane-and-train-maker an unexpected boost
in its costly trade dispute with Boeing Co.
• Iraqi forces seize oil city Kirkuk from Kurds in bold advance
Iraqi government forces captured the major Kurdish-held oil city of Kirkuk
on Monday, responding to a Kurdish referendum on independence with a bold
lightning strike that transforms the balance of power in the country.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty Futures were trading at 10,263.00, trading down 0.2 percent
from its previous close.
• Indian government bonds are likely to fall in early session tracking a
rise in U.S. Treasury yields, as underlying sentiment remains negative in a
holiday-truncated week. The yield on the benchmark 6.79 percent bond maturing in
2027 is likely to trade in a 6.71 percent-6.76 percent band.
• The Indian rupee will likely open lower against the dollar in early trade,
as higher U.S. Treasury yields amid reports President Donald Trump prefers a
more hawkish candidate to lead the Federal Reserve boosted the greenback.
GLOBAL MARKETS
• All three major U.S. stock index rose to record closing highs on Monday,
with the Dow Jones Industrial Average less than 50 points below 23,000, ahead of
a long list of earnings this week and as financial shares recovered from last
week's losses.
• Oil prices held firm after Iraqi forces seized the oil-rich city of Kirkuk
from largely autonomous Kurdish fighters while Asian shares look set to extend
their bull run on optimism about upcoming earnings.
• The dollar edged up against its peers on Tuesday, supported by a rise in
Treasury yields following a report that U.S. President Donald Trump was
favouring a policy hawk as the next head of the Federal Reserve.
• U.S. Treasury yields rose on Monday after a report that President Donald
Trump was favoring Stanford economist John Taylor to head the Federal Reserve,
and Fed Chair Janet Yellen's weekend comments that the economy remained strong.
• A risk premium has returned to oil markets with a vengeance, boosting
global price benchmarks as escalating fighting in Iraq threatens supplies while
political tensions loom between the United States and Iran.
• Gold prices were steady, after dipping below $1,300 an ounce in the
previous session, as the dollar held firm on strong U.S. Treasury yields.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.73/64.76 October 16 -$4.62 mln $23.48 mln
10-yr bond yield 6.93 pct Month-to-date -$676.55 mln $1.80 bln
Year-to-date $4.68 bln $25.08 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.6950 Indian rupees)
(Compiled by Shradha Singh in Bengaluru)